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1. August 2012How Digital Influences How We Shop Around the World
Digital’s influence on grocery shopping is on the rise • Online shopping intentions for food and beverage categories increased 44% in two years • 6-in-10 global respondents used the Internet for grocery shopping research • Nearly half (49%)of respondents purchased a product online • Globally, 46% used social media to help make purchase decisions • 37% purchased from online-only stores most frequentlyOne-third of the world’s population is growing. In this report, Nielsen analyzesonline, an increase of 528 percent over the how shoppers use online connectedpast 10 years*. While Internet penetration devices (computers, mobile phones andrates vary by geographic region; North tablets) to aid or even complete theirAmerica (79%), Australia/Oceania (68%), household grocery shopping.Europe (61%), Latin America (40%), What types of online activitiesMiddle East (36%), Asia (26%) and Africa do consumers engage in(14%), they continue to climb steadily— most? How much time isespecially in the developing countries of spent on these activities?the world. What are future spendingConnected devices, such as computers, intentions, which websitesmobile phones and tablets have become are preferred, and whata way of life for many, but shoppers are payment methods aredigitally engaged to varying degrees favored? New findings fromdepending on the products they buy. a Nielsen online survey ofWhile e-commerce activity for some respondents from 56 countriesconsumer-packaged goods (CPG) around the world provideproducts—especially perishable categories insight into digital influences onwhere freshness counts—may not be grocery shopping behavior. This reportas transformative as other non-CPG offers considerations for marketersindustries such as books, music and and guiding principles to help buildtravel, online grocery purchasing power is successful online strategies. About the Survey and Methodology The findings in this study are based on respondents with online access. While an online survey methodology allows for tremendous scale and global reach, it is limited in that it provides a perspective only on the habits of existing Internet users, not total populations. Results may therefore, among other possibilities, over-report online usage. Additionally, responses are only indicative of respondents’ beliefs about their own online usage, rather than actual metered data.* Internet World Stats – www.internetworld stats.com/stats.htm Copyright © 2012 The Nielsen Company. 2
Online grocery purchase power is growingWhile non-CPG (consumer-packaged What categories of products do you plan to purchase on any connectedgoods) products reported the highest device in the next 3 to 6 months?penetration for digital shopping Global Averageintentions, with apparel, books, traveland consumer electronics rising to thetop of the list, the level of influence Q1 2012 Q1 2010for CPG-related products is growing.Intentions to buy food and beverages via 37online sources increased 44 percent in Apparel/Accessory/two years. Shoes / Jewelry 36More than one-quarter (26%) of globalrespondents said they planned to Books/Newspaper/Magazine 33purchase food and beverage products (hardcopy / physical subscription) 44via an online connected device in thenext three to six months—a jump from 3018 percent reported in 2010. Skin care Travel Service Reservation (Flight / Train / Ship /Car) 32and cosmetics also increased from22 percent to 25 percent in the latestsurvey. 30 Entertainment Tickets (Movie / Performance / Exhibition / Game, etc.) 20One-in-five global respondents said theyplanned to purchase electronic booksand digital newspaper and magazine 29 Computer / Game Softwaresubscriptions, a new category added 11to the Nielsen Global Survey in 2012.The online purchase intent of hard 26copy books and physical subscriptions Mobile Phone * (Including accessory) N/Adeclined from 44 percent in 2010to 33 percent this year. Categorieswith growing global purchase intent 26 Food & Beverageinclude computer/game software (+18 18percentage points), entertainmenttickets (+10), computer/game hardware 25(+6), video/music production (+5), cars/ Computer/Game Hardware & Peripheralmotorcycle and accessories (+4), and 19apparel/accessories/shoes/jewelry (+1). 25While online shopping delivers key Skin Care /Cosmeticsattributes shoppers demand, such 22as convenience, value and choice,the Internet, and more specifically Video/Music Publication 23e-commerce, will be successful to (CD, VCD, DVD) 18varying degrees of impact on CPGdepending on the category. For CPG 20categories, shoppers are more likely to eBooks/Digital Newspaper or Magazine Subscription* N/Aadopt an omni-channel approach, whereonline shopping becomes a supplementto traditional brick-and-mortar retailing. 11 Car/Motorcycle and Accessory 7 *Category added in 2012 Source: Nielsen Global Survey of Digital’s Influence on Grocery Shopping, Q1 2012 Copyright © 2012 The Nielsen Company. 3
Online usage for grocery shopping activities variesWhether checking a price or reading Thinking about household grocery shopping, which of the followinga consumer review, when it comes to activities have you done in the last month on any online connected device?grocery shopping, more than six-in-10global respondents (61%) said theInternet was their go-to-source forconducting research and just under half Global Average Asia-Paciﬁc Europe Middle East/Africa Latin America North America(49%) said they purchased a productonline.But research is just one of the many online 10 20 30 40 50 60 70activities respondents around the worldsaid they engaged in when thinking about Conduct research onlinegrocery shopping. Forty-five percent (for example, checked price,used the Internet to get information read a consumer review)about a product, 43 percent searched fordeals, 33 percent read a grocery retailer’s Purchase apromotional circular/flyer, 33 percent product onlinelooked for coupons, 26 percent browsed amanufacturer website,18 percent providedfeedback through social media, and 11 Read a grocery retailerspercent used a digital shopping list. circular/ﬂyer onlineA comparison of how shoppers acrossthe world used the Internet as a grocery Look forshopping resource revealed that while the deals onlinerank-order list of favored activities wasrelatively consistent from region to region,rates of usage varied considerably. While Look for coupons from an onlineInternet penetration rates are highest in coupon siteNorth America, usage levels across manyactivities in that region were among the Compare prices for a grocerylowest reported. Conversely, online usage product onlinerates for many activities in Asia-Pacificwere among the highest.Specifically, using the Internet to conduct Look up productresearch (70%), compare prices (48%), information onlineand provide feedback through socialmedia (26%) was most prevalent in Asia- Browse a manufacturers websitePacific countries. Latin Americans were for a grocery categorythe most active deal seekers (64%) andmanufacturer website browsers (41%).And more North Americans looked for Provide feedback about a grocerycoupons online (43%) than respondents in category through social mediaany other region. (wrote a review, blogged)In more Internet-developed regions of theworld, the research suggests a flattening Use a digital shopping listof online activity levels as usage becomesmore common place. In areas whereadoption is in the early phases, there is 10 20 30 40 50 60 70greater experimentation. Source: Nielsen Global Survey of Digital’s Influence on Grocery Shopping, Q1 2012 Copyright © 2012 The Nielsen Company. 4
Online is the timely resource for researchWhen it comes to finding a resource for research (37%), provide feedback via Percent of total researchinformation about grocery shopping- social media (33%), look for deals (31%) time conducted on anrelated activities, nearly half (47%) of and search for product information (31%). online connected device forglobal respondents spent more than 25 grocery shopping activities While the prevalence of using socialpercent of their total research time on media to provide feedback on grocerya connected device. And nearly one-in- < 25% _ 26% - 50% products is still relatively low (globalfour (23%) spent more than half their 51% - 75% 76% - 100% average is 18%), for those who are activeresearch time on the Internet. More North participants, many connect regularly—33Americans dedicated the greatest amount me least t ime percent on a daily basis and 45 percent t tiof research time online compared to the os weekly. In a world where consumers m 10%other regions - 18 percent claimed they have increasing influence on brandconducted more than 75 percent of their 13% perception through social media andresearch digitally. ratings and reviews, authentic responses GLOBALFor those who said they used the Internet and generating advocacy is critical. AVERAGE 53%for grocery shopping-related activities, the Marketers need to encourage feedbackmajority of global respondents connected and provide specialized experiences that 24%online either weekly or monthly. About increase engagement and build a two-wayone-third logged on daily to conduct relationship with the brand. How often have you used a connected device 12% 7% (PC, mobile phone, tablet, etc.) for each of the following ASIA- Global Average PACIFIC 54% 27 % Daily Weekly Monthly 11% Conduct research online 11% 37% 47% 16% EUROPE 59% Purchase a product online 19% 9% 43% 48% Read a grocery retailers circular/ﬂyer online 23% 54% 23% 8% Look for deals online 14% 31% 48% 21% MIDDLE EAST/ 54% AFRICA Look for coupons from an online coupon site 25% 29% 52% 19% Compare prices for a grocery product online 23% 56% 21% 12% Look up product information online 13% 31% 49% 20% LATIN 50% AMERICA Browse a manufacturers website for a grocery category 25% 24% 51% 25% Provide feedback about a grocery category through social media 33% 45% 23% 18% Use a digital shopping list NORTH 44% 23% 51% 27% 20% AMERICA 19% 19%Source: Nielsen Global Survey of Digital’s Influence on Grocery Shopping, Q1 2012 Copyright © 2012 The Nielsen Company. 5
Social media’s influence is risingI use social media sites to help me make purchase decisions 2011 2010 63% 50% 44% 60% 40% 49% ASIA- MIDDLE EAST/ LATIN PACIFIC AFRICA AMERICA 32% 21% 46% 30% 14% 43% NORTH GLOBAL EUROPE AMERICA AVERAGESource: Nielsen Global Survey of Online Shopping, Q3 2011 and Q1 2010The influence of social media on purchase percent of Latin American respondentsdecisions is growing across all regions, and 32 percent of European onlinealbeit at varying levels. Globally, 46 users relied on social media topercent of respondents said they used help make purchase decisions, ansocial media outlets to help make increase of five and two points,purchase decisions, a rise of three respectively.percentage points from 2010. North Social media can play anAmericans were the least reliant on social important role in levelingmedia at 21 percent, but have increased the playing field among thetheir dependency by seven points. competition, allowing smallerAsia-Pacific respondents were the most brands to compete. Encourageactive social media users to aid purchase satisfied customers to usedecisions at 63 percent, an increase from online ratings and reviews to60 percent two years ago. share positive experiences, but it isMiddle Eastern/African respondents a two-way communication mediumincreased their dependency on social and marketers must engage in themedia the most, rising 10 percentage dialogue in order to stay in control.points to 50 percent in 2011. Forty-four Copyright © 2012 The Nielsen Company. 6
Online shopping preferences and paymentsThirty-seven percent of global percent, respectively. And while North cash on delivery, 12 percent chose directrespondents said they most frequently Americans reported a nine-point drop debit from a checking or bank account andpurchase from online-only stores—an since 2010 in their preference for shops 10 percent utilized a debit card.increase from 34 percent in 2010. Twenty- that are exclusively online, Asia-Pacific Latin Americans were the most prolifictwo percent preferred sites that also respondents reported the opposite trend, credit card users for online purchases, ashave traditional brick and mortar stores, with a nine point increase for shopping more than half (51%) used this method.17 percent favored sites that allow you these online-only websites. Both regions Middle Eastern/African respondentsto select products from many different reported usage of online-only websites at were most reliant on direct debit fromonline stores and 11 percent chose sites 40 percent. checking/bank accounts, as one-in-fourthat also sell products through catalogs or When it comes to paying for online utilized this payment system. Northover the phone. purchases, one-third (32%) of Americans primarily use one of threeFor sites that are connected with physical respondents around the world said they primary methods; credit cards (34%),store locations, Latin Americans and most often paid for purchases using a debit cards (25%) and PayPal (24%).North Americans reported the greatest credit card. One-fourth (24%) preferredpreference at 34 percent and 30 the ease of using PayPal, 14 percent usedWhat kind of websites do you purchase from most frequently when shopping online? ONLINE-ONLY WEBSITES BRICK & MORTAR STORE WEBSITES 40 % 16% Asia-Paciﬁc 31% Asia-Paciﬁc 19% 38% 23% Europe 39% Europe 21% 19% 34% Latin America 20% Latin America 34% 24% 10% Middle East/ Africa 21% Middle East/ Africa 10% 40% 30% North America 49% North America 17% 37% 22% Global Average 34% Global Average 20% 2011 2010 MULTIPLE ONLINE STORE WEBSITES CATALOG/PHONE-ORDER WEBSITES 26% 10% Asia-Paciﬁc 30% Asia-Paciﬁc 8% 10% 13% Europe 13% Europe 13% 17% 8% Latin America 17% Latin America 9% 11% 6% Middle East/ Africa 14% Middle East/ Africa 8% 5% 10% North America 7% North America 11% 17% 11% Global Average 20% Global Average 10%Source: Nielsen Global Survey of Online Shopping, Q3 2011 and Q1 2010 Copyright © 2012 The Nielsen Company. 7
Strategies for how to win with digitalShopper marketing tactics are changing Determine what activities are importantand there are several ways to grow to core shoppers and customize thepositive engagement levels. Whether offering. If shoppers are more deal-customizing the message for the shopper, centric, provide coupon promotions.more narrowly segmenting shoppers, Third, connect with shoppers via theor delivering more ‘authentic’ messages right medium. An increasinglyin brand communications, savvy digital complex landscape providesstrategies must help personalize and consumers with a wide arrayintegrate value-added content to improve of choices. Marketers need tothe user experience. focus on the medium thatFirst, focus on the right shopper. Not provides the best return oneveryone is going to use digital. Nielsen investment. Think aboutresearch finds that one-of-four CPG product usage and deviseshoppers are considered ‘Trendsetters’. strategies that speak toThese are generally shoppers that love the needs of consumers.to keep ahead, try new things and tell Pair mobility with needothers about them. They are typically and create apps that, foryounger compared to other segments, example, make it easier tohave children in the household and are a create a shopping list, refillbit more affluent compared to the general prescriptions or navigate a store.population. Whether the platform is online,Second, engage shoppers with the right mobile, social or in-store, prioritize themessage. ‘Trendsetters’ tend to be medium based on the impact it drives andmore digitally engaged, but that is still the feasibility of deploying it. Digital candependent on what they are buying. be complex, but rewarding if done right.An increasing complex landscape provides consumers with a wide array of choicesWeigh impact vs. feasibility of tactics to optimize digital platform Searching for Reading a Looking Sample Strategy coupons Flyer/ Circular for Deals Website E-Circular Emails ONLINE Printable Coupons Digital Magazines Search/Display Ads Mobile Coupon MOBILE Text Message Mobile Apps Reviews SOCIAL Social Media Kiosks IN-STORE QR / Bar Codes Copyright © 2012 The Nielsen Company. 8
Countries in this studyArgentina Indonesia South AfricaAustralia Ireland South KoreaAustria Israel SpainBelgium Italy SwedenBrazil Japan SwitzerlandCanada Latvia TaiwanChina Lithuania ThailandChile Malaysia TurkeyColombia Mexico United Arab EmiratesCroatia Netherlands United KingdomCzech Republic New Zealand UkraineDenmark Norway United StatesEgypt Pakistan VenezuelaEstonia Peru VietnamFinland PhilippinesFrance PolandGermany PortugalGreece RomaniaHong Kong RussiaHungary Saudi ArabiaIndia SingaporeAbout the Nielsen Global Survey About NielsenThe Nielsen Global Survey of Digital’s Nielsen Holdings N.V. (NYSE: NLSN) isInfluence on Grocery Shopping was a global information and measurementconducted February 10–27, 2012 and company with leading market positionspolled more than 28,000 consumers in in marketing and consumer information,56 countries throughout Asia-Pacific, television and other media measurement,Europe, Latin America, the Middle East, online intelligence, mobile measurement,Africa and North America. The social trade shows and related properties.media, online payment and website Nielsen has a presence in approximatelyinsights are based on the Q3 2011 Global 100 countries, with headquarters in NewSurvey. The sample has quotas based on York, USA and Diemen, the Netherlandsage and sex for each country based ontheir Internet users, and is weighted to For more information, visitbe representative of Internet consumers www.nielsen.comand has a maximum margin of error of±0.6%. This Nielsen survey is based onthe behavior of respondents with onlineaccess only. Internet penetration ratesvary by country. Nielsen uses a minimumreporting standard of 60 percent Internetpenetration or 10M online populationfor survey inclusion. The Nielsen GlobalSurvey, which includes the GlobalConsumer Confidence Survey, wasestablished in 2005. Copyright © 2012 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are trademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. Other product and service 9 names are trademarks or registered trademarks of their respective companies. 12/5301